United Nations:

United Nations:

"There is little hope for the world economy in 2024."

She mentioned climate calamities, trade slowdowns, rising interest rates, and conflicts.

The UN has released a "bleak" projection for the world economy for 2024, noting problems brought on by rising tensions, a slowdown in international trade, persistently high interest rates, and an increase in natural disasters.

In its principal economic report, the UN predicted—and exceeded—that the world economy would rise by 2.7% in 2023 but 2.4% this year. However, neither is above the 3%.

growth rate before to the 2020 start of the COVID-19 pandemic, she continued.

The Associated Press reports that UN predictions are lower than those of the Organization for Economic Cooperation and Development in late November and the International Monetary Fund in October.

According to the International Monetary Fund, global growth would drop from its projected 3% in 2023 to 2.9% in 2024. The Organization for Economic Co-operation and Development, situated in Paris and including 38 member nations from the most developed economies, calculated that global growth Additionally, it is predicted to decrease from 2.9% in 2023 to 2.7% in 2024.

The prospect of extended tightening of credit conditions and rising borrowing costs represent "strong headwinds" for the indebted global economy, particularly in the poorest developing countries that require investment to revive growth, the 2024 World Economic Situation and Prospects report warned.

The world's largest economy, the United States, has successfully controlled high inflation without slowing down the economy, mostly allaying fears of a recession in 2023, according to Shantanu Mukherjee, director of the UN's Department of Economic and Policy Analysis.

However, he said during a press conference held to mark the report's release that "We are not yet

beyond the danger area.

According to Mukherjee, this is because a surge in inflation could result from the unpredictable global scenario. He went on, "For instance, a disruption in the fuel supply chain or an issue with distribution or availability of fuel could result in another increase in interest rates to stabilize the situation."

He went on to say: "We do not expect a recession per se, but the main source of risk is the fluctuations in the environment surrounding us."

Mukherjee went on to say that extremely high interest rates for an extended length of time and the potential

A "very difficult balancing act" is being made more harder by price shocks. We stated that we are still in the woods for that reason."

As per the analysis, there is a projected decrease in the worldwide inflation rate from 8.1% in 2022 to 5.7% in 2023 and then to 3.9% in 2023.

But this year, yearly inflation is predicted to be higher than 10% in over 25% of developing nations.